A feasibility study by Dynatec Engineering on the Komis gold deposit near La Ronge, Sask., has been deemed positive by property-holder Waddy Lake Resources (TSE).
According to the report, Komis contains minable reserves of 300,432 tons grading 0.47 oz. gold per ton using a 0.15-oz. cutoff and a 15% dilution factor.
Waddy plans to proceed with underground bulk sampling and development, including construction of a spiral ramp decline. It has applied for an underground test-mining permit from the Saskatchewan government and expects to have permitting completed by Oct. 1.
To provide financing, affiliate Golden Rule Resources (TSE) has agreed to exercise two million warrants to buy common shares of Waddy at 30 cents per share. Some of the proceeds will be used to repay an outstanding note to Golden Rule.
A bulk sample, the size of which has yet to be determined, will either be processed off-site at a pilot plant or at Golden Rule’s Jolu mill, 40 miles south of Komis.
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